Oil & Gas Case Study
“We wanted our operation to be unified
Better decision making
Access accurate and complete data to make better decisions in real time.
Improved performance
Monitor pumps, wells, and other equipment so you can optimize production in the moment.
Reduced opex
Schedule crew and equipment “just in time” for increased efficiencies.
The challenge
Our customer is a top oil and gas producer in North America. They were burdened by legacy infrastructure that impacted their ability to produce oil at an average cost per barrel that was competitive and profitable.
They viewed their existing operation as a series of franchises where data analytics and decision making occurred in isolation. Their vision was to execute as one unified company with a common operating picture.
The operation generates a massive amount of real-time data from almost everything including pumps, wells, people, and trucks. They want to use this data to streamline event detection and notification for better decision making, performance improvements, and reductions in opex. However, they’re unable to tap the potential of their data because it’s siloed by source and impossible to analyze in real time.
“We want to run our operations in an auditable, repeatable way,” said the Manager. “In order to do this, we need the right data in real time at our fingertips so we can make good decisions precisely when they’re needed.”
The vision is to combine all high-value operational data into a single, interoperable, standards-based data repository. This will empower the high-value personnel in the operations control room to make proactive decisions rather than simply monitor alarms and notify the field. In order to achieve these results, an operating model that can aggregate, cleanse, display, and analyze data in real time is required.
This unified platform will also provide them with the ability to respond in the moment, a critical requirement.
“It doesn’t make sense to invest in real-time data if you can’t respond in real time,” said the Manager. “SensorUp can help us streamline event detection and notification so we’re able to respond to scenarios in the moment.”
The solution
The project focuses on business value for three distinct elements of the operation: safety, operational efficiency, and streamlined production assurance.
IoT data was integrated from various sources including operator wearables, SCADA systems, Automated Vehicle Location (AVL) systems, and in-situ sensors:
IoT Data for Safety
- Worker GPS Locations
- Worker position data (standing or lying)
- Gas concentration data from worker on-body detectors
IoT Data for Operational Efficiency
- SCADA tank levels
- SCADA production rates
- Status of hauling trucks (full vs. empty)
- GPS locations of hauling trucks (customer & third party)
IoT Data for Streamlined Production Assurance
- SCADA tank levels
- Casing gas pressure levels
- PC pump torque, RPM rates, historical trends
- Propane consumption rate
Safety
The location of workers is monitored and visualized. On-body gas sensor data streams are continually monitored. Notifications are sent automatically to the control room when a gas exposure event is detected. Over time, the system can detect long term trends of rising gas levels and send notifications to the control room.
Operational Efficiency
Data from disparate assets are monitored. The system automatically sends notifications when it detects that a tank is near capacity. A truck with capacity is then identified to haul the load to the closest facility. The continuous processing of tank levels, production rates, and weather data streams enables the system to send a “slow down production” notification to operators when warranted.
Streamlined Production Assurance
Pump and production rates are monitored to identify wells that do not produce, and to prioritize tests that may be needed. Regular testing occurs for potential speed ups of wells. Well operating parameters are captured and monitored for opportunities to improve operational performance.
Working together, our customer is leveraging their IoT data to obtain insights that drive streamlined and predictable operations, performance improvements, and opex reductions.
With less time spent gathering and analyzing data, the operations team has more time to focus on planning and responding to events in the field. They can evolve from a reactive work model to one where they make well-informed decisions and deliver significant strategic value to the business.
The future of oil and gas
Our customer views the oil and gas business as very dynamic and ad hoc where some operators struggle to make key decisions in time.
However, due to increased regulatory scrutiny, social license, and susceptibility, the odds of making a meaningful profit have decreased. In order to survive (and even thrive), oil and gas companies must embrace new technologies that will introduce structure and process where none existed before.
In the words of our customer: Instead of relying on good luck, oil and gas companies should rely on good data.
The ability to automate processes and view the entire operation from a common operating picture represents a significant shift in the industry. Those companies that seize the moment will reap the rewards from a more strategic and profitable operating model.